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CEO Yves Guillemot was in an investor’s call yesterday and he explained why digital games’ price stay the same on PSN and XBL instead of matching other online retailer’s offers such as Amazon or eBay. He stated that PC tends to do better in terms of digital sales than consoles while consoles do better in the physical sales. Guillemot says that they depend on its sales once the game is one or two years old which means that the game isn’t as available at retailers as it was at launch.
“Digital is more reactive than what we put in stores, but at the same time, it doesn’t react as fast on consoles than it does on PC,” Guillemot admitted.
“What we can say is that when games are older than one year, digital is a lot more dynamic on console because there are less units in stores. It’s a new business, a new trend, and we think all this will get more in line with time, but for sure, at the moment you see all sorts of prices depending on who is doing a promotion for that specific week.”
Ubisoft CFO Alain Martinez responded saying that lowering the price of digital sales to become lower than physical won’t happen but after a couple of weeks of the game’s release “things can change.”
“On digital we will not sell [a game] for a lower price compared to physical. After a few weeks or few months things can change, and as Yves has been saying, sometime you might have a promotion on Amazon [that is] not on GameStop, but we can also react on its side,” added Ubisoft CFO Alain Martinez.
“We are actually more aggressive on the PC side where digital is very, very strong. We tend to be more conservative on the digital side for more console and more flexible on PC.”
Do you think that this is a good strategy or should they try to balance both prices’ ? Tell us in the comment section. (Credit: VG247)
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